Mid Canterbury Federated Farmers conference

Good afternoon everyone and thank you for inviting me here today. I’d like to start by acknowledging Chris Allen, President of the local branch, and also the sector representatives. I’d also like to acknowledge Angus McKay and the other councillors here today, as well as Jeanette Maxwell, Willy Leferink, Ian McKenzie and the zone committee.

I’m glad to see your provincial executive has organised such an important and topical seminar, one that is really relevant to your region and nationally as well. Today will have been a great opportunity for sharing knowledge and perspectives, discussing practical implications and generally learning from each other.

I’ve specifically been asked to speak about farming with nutrient limits and the government’s fresh water agenda. In focussing on this topic I’ll give you some background on the government’s reform proposals for freshwater management, and to discuss some of the associated challenges and opportunities.

I’m particularly keen to focus on the role of good management practice, and the importance of the rural sector being involved in water management so that well-informed decisions can be made.

Before I begin, I’d like to acknowledge how important you all are to the New Zealand economy. Here, in rural districts like ours, we depend on primary production for our region to thrive. Mid Canterbury has a proud history of local innovation, and this trait will continue to be important as we face a range of challenges into the future.

What happens on the land has significant impacts on both water quality and flow levels, and both the primary industries and the urban sector have a big part to play in managing with nutrient limits.

More generally, society is expecting improved environmental performance. Not just domestically, but also in our international markets, where the likes of supermarket chains are looking for higher standards, driven by consumer feedback. Increasingly it’s not just about saying we are doing the right things, but being able to demonstrate good management practice. In turn this strengthens the value of “Brand New Zealand” in international markets.

There is a real challenge to provide good environmental stewardship as the demand for primary production increases. The latter may mean intensification and diversification. As some of you know, the Ministry for Primary Industries has set a goal of doubling export value by 2030, creating a significant increase in both production and added value from primary industries, and contribution to GDP.

Good management practice, better use of our available natural resources (including maximising their potential) and technology transfer into primary industry practices will help us meet this challenge.

In 2009 the Government recognised greater direction was needed on how water should be managed. The thinking here included the need to set limits to manage both water quality and quantity, and to improve water management decision making processes.

The Government requested advice on these matters from the Land and Water Forum - a collaborative group comprising primary sector representatives like Federated Farmers as well as iwi and environmental and recreational non-governmental organisations and others.

Many of you will be aware of the 2011 National Policy Statement for Freshwater Management, a significant milestone. The Policy Statement requires that regional councils set objectives and limits (for both water quality and water quantity) for all water bodies no later than 2030.
In March this year the Government released the 'Freshwater reform 2013 and beyond' document. It proposes a series of reforms to support communities to make better decisions, plan, set objectives and limits for their water bodies, and then manage land and water use within those limits.
Stronger national guidance and direction is a big part of these proposals. The reform document proposes taking action in three key areas to begin with. These are:
• a collaborative planning option as an alternative to the current system under the Resource Management Act 1991;
• a National Objectives Framework that supports councils in setting objectives. It requires national minimum environmental states in rivers and lakes for ecosystem health and human contact; and
• requiring councils to better account for how all water in a region is used, including how much is taken and what is discharged into it, in order to better manage within water quality and quantity limits.
I emphasise that these proposals are only that, Cabinet has yet to make decisions on a final reform package. The reform document also signals some longer-term proposals that build on the foundation measures that I just mentioned.
Improving the way our water resources are managed will take time and will need to balance environmental and economic considerations in a sensible manner. I understand many thoughtful and considered submissions have been received, which will inform the advice that will be provided to Cabinet.
The reform proposals draw on reports from the Land and Water Forum and ongoing engagement with a group of iwi leaders. I understand the proposals have generally been well-received. This reflects the considerable relationship building and development of ideas within the Land and Water Forum.
As you will know, Federated Farmers were very involved with the Forum and even provided a venue for discussions. I want to commend the constructive and valuable role the Federated Farmers representatives provided, in particular your own Ian McKenzie.
The economic impact of the reforms on farming is a critical consideration and the water management decisions councils and communities make need to be well-informed. The Government has been working with some councils to improve the economic information underpinning decision making on objectives and limits.
Objectives, limits and time frames need to be set with an understanding of what the associated impacts would be so it is crucial that you and all the primary sectors are involved. Such involvement, and the discussions that arise, provide an opportunity for communities to understand the important contribution the primary sectors make to their region.
I am sure that it will come as no surprise to you that the reform proposals around collaborative planning have been informed by what has been going on in Canterbury in recent years. Canterbury has been a leader in taking a collaborative approach to freshwater planning.
Many of you have recognised the importance of getting involved in the collaborative planning process, and are already working with your local zone committee to make progress under the Canterbury Water Management Strategy. I want to congratulate you for this.
Collaborative planning is not always easy and does take a lot of time and effort. However, it also provides a real opportunity to develop local solutions to local problems. This is much better than having someone sitting in Wellington or Christchurch deciding what is best for you here.
For evidence of its value, the first RMA Plan to be developed in this way – the Hurunui Waiau River Regional Plan – has recently been finalised and supports new irrigation development while also improving the environment by setting numerical limits on key nutrients.
Managing with limits is challenging and will mean looking at your farming system as a whole and how to reduce nutrient losses using tools such as Farm Environmental Plans and Overseer. I want to emphasise the importance of good management practice in context of managing with limits.
The Land and Water Forum highlighted good management practices as essential for achieving freshwater objectives and limits. In line with this, the reform document proposes that sector good management practice “toolkits” be developed.
The toolkits would include the range of practical things that a resource users can do to reduce their discharges of contaminants, how much the options cost, and how much they reduce discharges. For example, information on dairying practices could cover upgrading effluent treatment facilities, changing wintering practices and completing stream fencing.
For stormwater management, options could include treatment ponds, grass filter strips, and improved roading design. Using such toolkits would help the sectors provide credible evidence on the impacts they are having and how they are managing nutrients on-farm.
I also encourage you to look at farm plans, and see this as an opportunity to understand your farm better as a system, and where you are bearing unnecessary costs. Getting on board early and exploring how you can save money through adapting current management practices will be beneficial if it enables you to find ways you can lift productivity and lower cost.
I understand many of you are nervous about farm plans – particularly where this might be linked to the use of on-farm nutrient modelling tools such as Overseer.
The Government is continuing to invest in Overseer to make sure we have the best science available supporting the modelling work, and that the data is fine tuned to cover the differences in farming systems and location and remains publicly available and accessible.
We are also determined to ensure Overseer is used appropriately by Councils, and that protocols exist to ensure it is used consistently. The last thing we want is an expensive compliance regime that does nothing for environmental improvement.
Research has a big role to play in providing solutions and I am excited about the recent announcement of the Lincoln Hub, which will be a world class agricultural research and education facility in our region. Lincoln University, Dairy NZ, AgResearch, Plant and Food and Landcare have formed a partnership to develop this hub that will provide New Zealand agriculture a one stop shop for sharing information and ideas and will drive innovation.
On the irrigation front, the Government is working hard on infrastructure for water storage and distribution through the Irrigation Acceleration Fund and the Crown Water Investment Company.
Earlier this year the Government announced $80 million will be made available in Budget 2013 to invest in irrigation schemes. In January the Minister for Primary Industries put in place an Establishment Board to guide the formation of a commercially-driven Crown company that will partner with private investors in supporting irrigation schemes that are investment ready and meet the investment criteria.
Well-designed irrigation developments promote efficient water use and improve reliability of water supply, which helps increase the value that can be generated from the land. Through using water storage and water harvesting, irrigation systems will assist in meeting the challenges of low flows, poor water availability and drought. However, along with the positive effects that increased water availability will have on production, there will be some new challenges to manage.
Ultimately, reliable irrigation will mean paying more for water than we have become used to. Any irrigation scheme will face challenges in signing up enough people who are willing to pay for their water. It may not all be smooth sailing in the development of local irrigation schemes, and I am aware that some schemes in the region have encountered a range of challenges in the process of development.
I would like to acknowledge the efforts that these scheme developers are going to in working with each other and Environment Canterbury to identify the issues and try to establish long-term sustainable solutions.
In closing, I’d again like to commend the contribution your sector is making to the zone committee discussions on water management in the region. This provides a real opportunity to develop solutions tailored to local conditions. I’d also like to encourage you in your on-going environmental stewardship role.
I know the environment is important to farmers, and you are well placed to continue to develop and share innovative and workable solutions that deliver improvements on the ground. While managing with nutrient limits is a significant challenge I am confident the primary sector’s resilience and adaptability stand it in good stead to rise to meet this challenge.